The debate over tariffs, combined with fears of inflation, led to a significant drop in the U.S. stock market on Monday and Tuesday. A Tuesday exchange between U.S. President Donald Trump and Ontario Premier Doug Ford further strained trade relations between the United States and Canada.
The U.S. stock market saw a sharp decline for two consecutive days. The drop followed the escalation of the trade war by President Trump, who threatened to double tariffs on metals imported from Canada after Canada announced plans to raise the price of electricity exports to the U.S.
In the end, both President Trump and Ontario’s Premier backed down, leaving behind a market shock.
However, President Trump allowed the implementation of planned tariffs of 25% on imports of steel and aluminum from Canada to support products made in America.
“We are doing the right things. We are going to bring jobs back to America, and we will not be made a laughingstock,” President Trump said.
For the past 36 years, Ramon Pereiras has been running the Taberna del Alabardero restaurant. His business survived the coronavirus and the tariffs from President Trump’s first term.
“Remember 2018, remember 2020? It will be alright. Politics is a game, isn’t it?” he said.
The Dow Jones Index, which includes the 30 largest U.S. companies, fell by 2% on Monday and 1% on Tuesday. The consequences of the decline were felt by Roger Frechette, a retiree from Virginia.
“It’s really hard to watch such a sharp drop in stock value. I think a large part of the growth for the entire year is already gone,” he said.
“People are rushing and reacting somewhat excessively now, so we’ll see. It will take about 30 days to see what effect these tariffs will have. Even President Trump himself keeps changing his mind, so who knows what will happen,” said Michael, another Virginia resident.
Financial analysts say that unpredictability brings the worst consequences.
“It’s hard for American investors, businesses, and consumers to understand what future policies will look like. More certainty in this regard would be helpful for people,” said Layna Mosely from Princeton University, according to VOA.
When asked if he anticipates a recession, President Trump said, “I don’t see that happening.” However, many Americans view the performance of the stock market as a response to this.
/GazetaSinjali/
